PRODUCT providers are using scaremongering tactics and misleading information to promote critical illness cover, the City watchdog said.
The Financial Services Authority warned that critical illness cover, which pays out a lump sum if the holder develops certain serious diseases, was a complex product which was often not fully understood by consumers.
But despite this, in a review of the promotions of 25 firms offering the cover, it found a range of what it termed "unsuitable" tactics, ranging from scaremongering to unsubstantiated claims and misleading facts.
The regulator found promotions that warned consumers there were "100,000 cases of cancer each year", even though not all forms of cancer are covered.
Other problems included claims boasting about the price and phrases such as "peace of mind at the lowest price".